Organization and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

NNN acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and primarily held for investment ("Properties", "Property Portfolio", or individually a "Property").


			September 30, 2020
Property Portfolio:
Total properties			3,114
Gross leasable area (square feet)			32,421,000
States			48
Weighted average remaining lease term (years)			10.7

Computation of Basic and Diluted Earnings Per Share

The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted earnings per common share using the two-class method (dollars in thousands):


	Quarter Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Basic and Diluted Earnings:
Net earnings attributable to NNN	$	56,069	$	66,693	$	167,512	$	225,394
Less: Series E preferred stock dividends	—		(4,097)		—		(12,291)
Less: Series F preferred stock dividends	(4,485)		(4,485)		(13,455)		(13,455)
Net earnings available to NNN’s common stockholders	51,584		58,111		154,057		199,648
Less: Earnings allocated to unvested restricted shares	(179)		(163)		(516)		(412)
Net earnings used in basic and diluted earnings per share	$	51,405	$	57,948	$	153,541	$	199,236

Basic and Diluted Weighted Average Shares Outstanding:
Weighted average number of shares outstanding	173,596,374		165,737,947		172,579,042		163,421,419
Less: Unvested restricted stock	(344,429)		(316,856)		(332,730)		(272,185)
Less: Unvested contingent restricted shares	(570,809)		(537,582)		(539,735)		(507,973)
Weighted average number of shares outstanding used in basic earnings per share	172,681,136		164,883,509		171,706,577		162,641,261
Other dilutive securities	101,130		478,222		108,800		484,802
Weighted average number of shares outstanding used in diluted earnings per share	172,782,266		165,361,731		171,815,377		163,126,063

Changes in Accumulated Other Comprehensive Income (Loss)

The following table outlines the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2020, (dollars in thousands):


	Gain (Loss) on Cash Flow Hedges (1)
Beginning balance, December 31, 2019	$	(11,128)

Other comprehensive income (loss)	(7,617)
Reclassifications from accumulated other comprehensive income to net earnings	1,663		(2)
Net other comprehensive income (loss)	(5,954)
Ending balance, September 30, 2020	$	(17,082)

(1) Additional disclosure is included in Note 6 – Derivatives.

(2) Recorded in interest expense on the Condensed Consolidated Statements of Income and Comprehensive Income.